Millionaires and million-dollar homes are on the rise. Nearly one in ten homes in the country is valued at $1 million or more. This is the highest percentage ever recorded in history, higher than last year and more than double the number before the pandemic, according to Redfin research.
So which state has the most million-dollar homes? None other than the Californie. Et “California’s expensive subways are earning millions of dollars in housing faster than anywhere else in the United States,” the research says. So not only does California already have more seven-figure homes than anywhere else in the country, it’s seeing them proliferate faster. They increased the most in Anaheim, San Diego and Los Angeles, where the percentage of homes worth $1 million or more is about 59%, 43% and 39% respectively. ” These listings are winning seven-figure homes because the Median home value in each of those metropolises is around $1 million, meaning there were many homes on the verge of breaking the million-dollar mark,” Redfin said.
In San Francisco and San Jose, about 80% of the homes are worth at least a million. Let it rest. Redfin doesn’t necessarily focus on the reasons for this, other than average sales prices, but we do know that those opulent and amazing coastal cities are struggling to build more homes; Those are wonderful examples of California’s housing crisis, which excludes people. “People who buy without hesitation are in the tech box and work at Google, Apple, Facebook or a similar company,” a Bay Area-based Redfin agent said in the analysis.
And it’s not just California. There are million-dollar-plus homes everywhere; About 47 of the 50 most populous metropolitan areas have seen their share of $1 million homes increase over the past year. The three that did not do so were Austin, Indianapolis and Houston; In the first, they have decreased considerably, while in the last two they have remained unchanged. Both Texas cities are known to be building more housing to meet demand, which is driving down real estate prices or at least preventing them from skyrocketing.
House prices have risen especially during the pandemic and have continued to rise over the past year, albeit at a slower pace. Meanwhile, luxury home prices are rising even faster. “Rising luxury home prices are having an outsized effect on the percentage of homes worth at least $1 million, as a large portion of them have long been close to reaching the million mark. ” dollars, and they just did it,” the study says.
In typical real estate cycles, when loan rates spike (as they did in the wake of the pandemic) requiring slowdowns and sales weaken, home prices fall. Redfin CEO Glenn Kelman himself said in a past interview with Fortune that he had never noticed anything like this. “I was CEO during the Great Financial Crisis,” he said. “Sales volume has decreased, but so have costs. » But we have an underlying problem: there are not enough homes and many other people who have lower than market loan rates do not need to sell. Inventories have improved, but have not reached pre-pandemic levels. It’s a combination that’s tricky for anyone looking to buy a home and pretty fantastic for anyone who already owns one. However, as Redfin publishes, there are metropolises where homes valued in millions of dollars are almost non-existent, such as Detroit, Cleveland, Pittsburgh and Kansas City. But these are only 4 out of 50 subway spaces where less than 1% of families have a seven-figure tag, so I don’t know how much comfort this will bring. Not to mention, starter homes are on the decline.